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If any country wants to have a stable coin, they can choose US dollar or Swiss Franc as its currency. There are already some countries doing that. Hence, there
by kosmet 9y ago
If any country wants to have a stable coin, they can choose US dollar or Swiss Franc as its currency. There are already some countries doing that. Hence, there is no need for a crypto currency for a stable coin.
The downside is that you cannot control the monetary policy of your of own country. You cannot pump money according to the economic situation. Look at the eurozone, for example, Germany wants to increase rates -hence increase the value of Euro- whereas Greece is still struggling. Leaving your currency to somebody else’s decisions may not be a good idea.
- gilj 9y agoJust a small off-topic comment: the Swiss Franc is not as stable as you think. For example, it used to be pegged (as in, CHF 1 was supposed to be worth EUR 1.2), but in recent history the Swiss Central Bank decided to unpeg the CHF to EUR, seemingly out of the blue. Some reading: - https://www.economist.com/blogs/economist-explains/2015/01/economist-explains-13 https://www.economist.com/blogs/economist-explains/2015/01/e... - https://www.reuters.com/article/us-swiss-franc-shock/three-years-on-from-currency-shock-swiss-central-bank-cant-get-back-to-normal-idUSKBN1F30FQ https://www.reuters.com/article/us-swiss-franc-shock/three-y...
- mseebach 9y agoYes... But since we're off-topic, running with the thread for a bit, the kind of upset caused by the euro/franc un-peg is entirely inside the boundaries of "stable" in the context of the kind of country for which just adopting another nations currency is an attractive choice.